Meta expects its 2026 capex to be $135B-$145B, vs. $130B-$145B previously, and forecasts Q4 revenue of $73B-$76B, vs. $73.6B est.; META jumps 3%+ after hours

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Meta reported its third-quarter 2026 earnings, exceeding revenue expectations with $64.60 billion, a 26% increase year-over-year, against analyst predictions of $63.37 billion. The company forecasts fourth-quarter revenue between $73 billion and $76 billion, surpassing the $73.73 billion estimated by analysts. This optimism is partly driven by the successful launch of its AI personal assistant, Muse, which debuted in September and has seen significant adoption, with over 10 million users setting up agents in the U.S. and Canada within a month and a half. Meta's workforce has decreased by 12% quarter-over-quarter to 66,000 employees, following substantial layoffs. The company also announced plans to create a new class of non-voting common stock, Class C, effective January 2027, structured as a two-for-one stock split to facilitate growth and maintain its founder-led model. Full-year capital expenditure forecasts were narrowed to $135 billion-$145 billion, indicating continued investment in AI infrastructure.

Meta's increased capex guidance and strong Q4 revenue forecast signal an aggressive push into AI infrastructure development. The company's strategic investments in foundation models and the successful rollout of its Muse AI assistant suggest a focus on integrating AI across its vast user base, particularly in commerce, which could set new benchmarks for AI agent monetization. This positions Meta to leverage its existing platforms for AI adoption, potentially influencing how other social media and tech giants approach AI integration and user engagement.

The creation of a new Class C non-voting stock and the potential relocation of CEO Mark Zuckerberg due to California tax proposals highlight Meta's proactive measures to secure future growth and founder control amidst evolving regulatory and economic landscapes. The reported workforce reduction, coupled with substantial losses in Reality Labs, indicates a strategic reallocation of resources towards AI development, potentially signaling a broader industry trend of optimizing operational costs to fund ambitious AI ventures and future-proofing business models against diverse market pressures.